This disclosure generally relates to a system and method for optimal aggregation of small-scale energy storage.
Electrical networks (i.e., a grid) deliver electricity from where it is generated to where it is consumed. Components (such as transformers and cables) throughout the grid are typically designed and sized to be able to handle “peak load”—the maximum load that may occur in that part of the network at any time of the year. If peak load for a given component exceeds its rated capacity, it may fail (leading to blackouts) and it may need to be replaced. Two key aspects to ensuring a reliable and well-functioning electrical network are that (1) supply and demand must at all times be matched, and (2) the rated capacity of many components throughout the network must not be exceeded.
In existing electrical networks, supply and demand must therefore always be kept in a careful balance. For example, as more electricity is required in the evening when one arrives home and turns on, for example, the lights, tv, oven, heating, etc., an equivalent amount of electricity generation must be dispatched to supply this demand. The utility company (or market operator) must therefore constantly forecast demand and ensure that there is enough generation to meet it.
With the increasing introduction of renewable generation (e.g., solar or wind energy) into the electrical networks, this equation is changing. While in the past, the challenge was always to match supply to demand (and only demand needed to be forecast), now there is also a lot of uncertainty around supply, Unlike fossil fuel based power plants, renewables are uncontrollable and unpredictable, and produce more energy when the sun is shining or the wind is blowing. In some places in the world, this can mean that at times there can be an oversupply, i.e., more energy generation than demand. Accordingly, in many places in the world today, the challenge is not just to match supply to demand, but also to match demand to supply. Thus, there is a need to also forecast the supply of energy.
One way to ease these problems is energy storage. For example, batteries (or other energy storage solutions) can charge when there is too much supply, and discharge when there is too much demand, to constantly assist in maintaining a steady supply-demand balance. However, in many scenarios dedicated energy storage can be very costly to install and maintain.
Accordingly, it is desirable to harness existing energy storage to help better manage our electrical networks by both (i) ensuring a healthy supply-demand balance, and (ii) protecting vulnerable components of the electrical network against peak load events.